CalPERS has the backing of proxy advisers Glass Lewis, Egan-Jones and RiskMetrics in the $230.2 billion systems shareholder proposal to have La-Z-Boy Inc. directors sit for annual elections, according to a CalPERS news release.
Egan Jones believes that staggered terms for directors increases the difficulty for shareholders of making fundamental changes to the composition and behavior of a board. We prefer that the entire board of a company be elected annually to provide appropriate responsiveness to shareholders, according to the news release from the California Public Employees Retirement System, Sacramento.
In March, the system placed the Monroe, Mich.-based furniture company on its focus list of underperforming companies. CalPERS owns 262,000 shares of La-Z-Boy.
The proposal will be up for a vote at La-Z-Boys annual meeting Aug. 20. Officials at the firm were not available for comment.